We've got to be smarter on building homes - Leonie Freeman

The Minister of Housing admits that a $650,000 house is not affordable for many first-home buyers and is looking at options to help reduce deposit costs. The KiwiBuild programme aims to build 100,000 affordable houses over the next decade, with a three-bedroom home in Auckland to cost $650,000. Prime Minister Jacinda Ardern said on Morning Report yesterday that $650,000 was a good price in the heated Auckland market. But Housing Minister Phil Twyford acknowledged later that that price tag was still too much for many people. And he's talking to banks about a shared equity model, where a bank would take a stake in a house to lower the initial cost. Auckland housing strategist Leonie Freeman says that a whole range of issues need to be considered if KiwiBuild is to succeed. She talks to Guyon Espiner.